Constellation Brands is getting bigger after it announced that it's buying another company.
As reported by the Democrat & Chronicle, in what can be described as one of the largest buys ever for an American craft brewer, Constellation announced that it plans to spend a whopping billion dollars to acquire Ballast Point Brewing & Spirits.
Acquiring Ballast Point seems like a great move business, as the San-Diego based craft brewer is one of the fastest growing brewing company in the industry right now.
As noted, the deal between the two brewery giants is expected to close by the end of the year and was pursued after Ballas Point began exploring an initial public offering about a month ago.
According to Constellation Brands CEO Robert Sands, "We were able to see what kind of performance they had, their margins," he added, "We were able to ascertain that it is the crown jewel of the craft space. We began discussions with them and were really able to talk them into doing the sale deal instead of the IPO."
Sands also pointed out that Ballast is a major player in the ever growing craft brewing industry, as projected by the Brewers Association to account for about 11 percent of the $101.5 billion national beer business to about 20 percent over the next decade.
In a similar report by New York City Today, Ballast Point Brewing & Spirits offers more than 40 beers for drinkers to choose from. Even after the deal with Constellation, the company will still enjoy a form of independence as according to the report, the management and employees will still continue with their current roles.
The craft-brewing company's flagship beer is sold in 30 states across the country with the company owning four manufacturing facilities in San Diego.
As of now, Ballast Point has an employee strength of 500 people.
Although the craft-brewing industry is just growing over the recent years, NASDAQ reported that Ballast Point started way back in 1996, as a small group of home brewers who remain dedicated to the art of making quality craft beer.
Constellation Brands looks to grow its reach even more as the Ballast is one of the most successful and highly-respected craft beer brewers in the industry today. With expertise in creating the most premium, highest quality award winning products, in addition to a grassroots approach, it's not hard to see why it continues to be what it is today.
And once the deal is completed, the Ballast Point Brewing Company will continue to build on its successful expansion across America and will now have access to Constellation's strong financial position and willingness to invest in growth.
